Meta and Microsoft may cut 23,000 jobs and buyouts
Meta Platforms Inc. and Microsoft Corp. are contemplating reductions or disclosing buyouts that may impact up to 23,000 positions, as part of a strategy to optimize operations and mitigate substantial expenditures on artificial intelligence. Meta informed its staff in an internal memo on Thursday of its intention to reduce its workforce by 10 percent, equating to approximately 8,000 employees, with the cuts commencing on May 20. The social-media company announced it would not be filling 6,000 open positions. Earlier in the day, Microsoft released a memo proposing voluntary buyouts to thousands of its US workforce. Approximately 7 percent of the US workforce will qualify for the buyouts, as indicated by sources. The company has not engaged in buyouts of this magnitude in the past, according to sources.
As of June 2025, Microsoft employed 125,000 individuals in the United States. Approximately 8,750 workers would qualify for the program. Major technology firms have been exploring strategies to reduce their expenditures while investing billions in data centers and other infrastructure to satisfy the growing demand for artificial intelligence services. Microsoft is accelerating its efforts to build data centers globally and has recently unveiled new AI investments in Japan and Australia. Meta has projected record capital expenditures for this year and has announced several multibillion-dollar agreements with AI partners in recent months. Both companies have implemented multiple rounds of workforce reductions in recent years.
Meta referenced its expenditures on AI in the memo authored by Janelle Gale, chief people officer. “We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” she wrote in the note. Employees at Meta have devoted considerable time this year to concerns regarding potential job reductions, which have already affected the Reality Labs division and various other teams. Gale indicated that the company was disclosing the layoffs ahead of schedule due to prior leaks regarding the plan’s details. Earlier this month, it was reported that Meta is planning to reduce its workforce. “I understand that this may not be well-received and that this confirmation places everyone in a state of discomfort, but we believe this represents the most prudent course of action, considering the current situation,” Gale wrote.
According to a memo from Chief People Officer Amy Coleman, Microsoft is extending its buyout program to employees whose combined years of service and age reach 70 or more, with certain senior positions and individuals on sales incentive plans being excluded from this offer. “I’ve never seen the company move with this level of urgency and pace, and I see the intensity and agility you bring every day,” Coleman noted in the memo. “To maintain this momentum, it is essential to concentrate on delivering exceptional results, fostering trust and empowerment among our managers, and streamlining processes to facilitate support for all.” Both companies are set to announce their quarterly earnings on April 29.
